Knowing the Rights of a borrower not only safeguards yourself, but it will also help you to manage your financial house well. Most of the businesses and individuals have one or more loans (borrowing) to repay, current political conditions and volatile economy made the repayments tuff and lenders are aggressive on recovering the loans they granted and borrowers are struggling to repay due to lots of problems which are uncontrollable. The smiley faces of bankers no more there and as a borrower you might be confused as the repayment demands don’t match with the initial terms that you negotiated, most of the problems start at this juncture and you must know your rights to safeguard yourself.
Saying that, in most cases, borrowers are not bothered to know their rights, their concentration is on getting the loan approved and borrowers never bothered to read through the agreement, terms & conditions, the borrower should know the basic information to advanced terms and conditions, always make sure to obtain a copy of agreement or offer letter before signing the agreement and read through before you agree to the terms and conditions, no surprises if you found out some executive rights vested to the lender as our small islands constitution itself a surprise to many.
The rights of a Borrower
A borrower has the RIGHT to shop for the best loan for you and compare the charges of different lenders.
You have the RIGHT to ask/notified about the total cost of your loan including the interest rate, capital and other fees.
You have the RIGHT to ask for the early settlement fees and other charges pertaining to premature settlement.
You have the RIGHT to ask questions about charges and loan terms & conditions that you do not understand.
You have the RIGHT to ask a copy of the agreement, offer letter and all the documents you sign related to the loan.
You have the RIGHT to know the Nonrefundable Fees & Charges
You have the RIGHT to ask for the official receipts pertaining to payments made by you
You have the RIGHT to ask for the instalment breakdown (Known as amortization) which have the details of how much capital and interest deducted from each payment you made.
You have the RIGHT to ask the offers and special provisions in writing
You have the RIGHT to know the reason if your loan was turned down / Rejected.
You have the RIGHT to ask for information and assign a person or an attorney to act on behalf of you
A borrower has the RIGHT to seek a legal solution regarding any unfair treatments to him and the process explained in the following article – The Financial Ombudsman – The Solution provider for Banking & Finance related complaints, Kindly note, your rights are not limited to above mentioned and you can demand for justice in any situation where it is not according to the agreement.